Matrixport Focuses on US Market With New Appointment

South Korean authorities will require homebuyers to disclose funds originating from cryptocurrency sales, a move aimed at increasing transparency in the nation's tight real estate market. The new rule is part of a wider government effort to address housing affordability, which is particularly pronounced in Seoul, and to integrate digital assets into its regulatory framework. The change, announced on Sept. 7 as part of new housing supply measures, will alter the mandatory funding plan submitted during property transactions. Proceeds from digital assets will be listed as a distinct category, similar to funds from stocks or bonds. Officials are also expanding loan disclosure requirements to include business loans and overseas borrowing, closing potential financing loopholes.Photo by Traxer on UnsplashImpact of asset volatility on property valuesThe policy follows growing evidence that volatility in assets like cryptocurrency can spill over into the property market. A 2024 study cited by Maeil Business Newspaper highlighted that both the COVID-era stock rally and Bitcoin's 2023 price surge had a discernible impact on housing values. According to Yu Jung-suk, a professor at Dankook University, apartments in Seoul's affluent Gangnam district are particularly sensitive to fluctuations in Bitcoin and the KOSDAQ index. He noted that high-profile property acquisitions by young crypto investors, even if few in number, can significantly sway market sentiment. Professor Yu suggested that regulators may need more comprehensive tools to manage the risks connecting different asset classes. The government's new measures also seek to cool the capital's housing market, where prices have continued to rise despite a slowdown in growth. In contrast, prices in areas outside Seoul have been declining since 2022. To address the supply-demand imbalance, officials plan to begin construction of 1.35 million new homes in the Seoul metropolitan area between 2026 and 2030. Stablecoin regulation and CBDC trials advanceBeyond real estate, officials are developing a formal regulatory structure for stablecoins. The Presidential Commission on Policy Planning is reportedly considering a model where a consortium of banks and fintech firms would be granted rights to issue a won-pegged stablecoin. Supervision for this new system would fall to a proposed Financial Stability Council, a body intended to serve as a central coordinator for financial policy, comprising the finance ministry, the Bank of Korea, and other regulators. The initiative aims to combine the stability of the traditional banking sector with the innovation of non-bank financial companies. The evolving regulatory environment is attracting attention from global industry leaders. Executives from Tether, the issuer of the USDT stablecoin, met with Shinhan Financial Group CEO Jin Ok-dong in Seoul on Sept. 8. While Tether representatives stated they were monitoring the regulatory climate, they confirmed no specific business plans were discussed. Separately, the Bank of Korea is moving forward with digital currency experiments. In partnership with government agencies and six major commercial banks, the central bank will launch a pilot program to test the use of a digital currency for distributing state subsidies and vouchers. 

KCC sets guidelines for user protection on metaverse platformsThe Korea Communications Commission (KCC) has established its latest guidelines for ensuring the protection and safety of users of metaverse platforms, dubbed the “Basic Principles for the Protection of Metaverse Users”.Photo by GuerrillaBuzz on UnsplashNavigating the metaverse landscapeAlthough metaverse platforms can create new economic and business opportunities by linking reality with the virtual realm and providing users with a realistic and immersive experience, the agency argued that various problems may arise due to the use of anonymous profiles or avatars.In response, the KCC assembled six voluntary principles for metaverse service providers to apply to their operations through discussions with a policy advisory group for metaverse ecosystem user protection. The group is composed of 29 members, including academics, legal experts and domestic and overseas companies. It has been active since last year.Fostering ethical metaverse environmentsThe principles cover topics like ensuring free yet respectful communication between users; granting users a platform for voicing their opinions on issues related to their rights and interests; and ensuring that transactions involving digital products and services are conducted on proper terms. They also urge companies to give users the right to use and manage their own data along with that of the metaverse.On a less technical level, the last principle mentions that companies should make efforts to study the long-term impact of the metaverse on users’ physical and mental health, and on society, culture, environment and economy.The agency has also proposed to draft a code of practice outlining more specific measures to protect users, such as prohibiting sexual harassment and stalking, reporting and punishing cyberbullying and transferring the right to purchase NFTs.Responsible governanceMajor metaverse platform operators like Naver, SKT and Meta, who are members of the agency, agreed to apply the guidelines and include them in their relevant terms and conditions documents and service operation regulations. The KCC stated that it plans to monitor whether or not these commitments are met.Although not mandatory, the guidelines are recommended as measures to resolve user inconvenience, enhance service reliability and provide standards for user protection. User protection includes that of children, adolescents and personal privacy.

Korea Bolsters Crypto Oversight and Anti-Fraud EffortsThe Korean National Police Agency (KNPA) is planning to build a system that allows for the swift suspension of wallet addresses on Binance, the giant global cryptocurrency exchange, during criminal investigations, according to a report by news outlet Edaily. This move comes as Binance is in the process of acquiring Gopax, one of the five major crypto exchanges in South Korea.Photo by Pixabay on PexelsPolice and crypto exchangesThe KNPA met today with these exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) and Binance to discuss this matter. In October last year, the KNPA signed a business agreement with the five exchanges to establish a crypto exchange compliance management system.The system serves as a tool for the police to search wallet addresses that are under investigation and determine which of the five exchanges is managing them. Operating 24 hours a day, the hotline enables them to swiftly request freezes and execute warrants. As of May of this year, the system has been utilized by 2,086 investigators.The police are currently working on expanding the system to incorporate Binance. Hence, the focus of today’s agenda is to introduce additional functionalities to the system that would allow the police to thoroughly examine wallet addresses on Binance and initiate freezes when necessary. Until now, the police have been making verbal requests via the hotline before issuing formal letters.In addition to addressing the integration of Binance into the system, the police will engage in discussions regarding enhancements to the compliance system for crypto exchanges and the management of the hotline. Looking ahead, their goal is to extend the application of the compliance system to encompass all 36 crypto exchanges operating in Korea at present.Financial authority bolsters probe unitMeanwhile, the Korean Financial Supervisory Service (FSS) held a press conference today to announce its plan for enhancing its capacity to combat the escalating prevalence of unfair trade practices. Particularly rampant in unregistered investment entities and social media chat rooms, these practices have prompted the FSS to take decisive action.To address this pressing issue, the FSS has devised a plan to bolster its investigative prowess. It intends to augment the manpower of its three investigation units, increasing the number of investigation officers from the current 70 to 95. Furthermore, the establishment of three additional teams is on the horizon, further strengthening the FSS’s investigative capabilities.The Special Investigation Team will fully dedicate its efforts to combating severe unfair trading practices that have the potential to cause substantial losses for investors. The Information Collection Team will employ a multifaceted approach to gather pertinent information. Through both in-person interactions and online activities, this team will diligently collect data essential to uncovering and addressing unfair trade practices. The Digital Investigation and Response Team will delve into the intricacies of emerging digital assets, including cryptocurrencies and security tokens. Their primary objective is to develop and refine investigative techniques specifically tailored to these novel forms of digital assets.In order to enhance its responsiveness to unfair trading practices, the FSS will introduce a new system for sharing investigative information with cryptocurrency exchanges. This collaborative effort aims to foster closer cooperation between the FSS, the prosecution, and the police, ensuring swift and effective responses to any instances of misconduct.The Korean financial authority has affirmed its commitment to working closely with relevant agencies to strengthen investor protection and promote transparency in the capital market. Additionally, it has warned investors to exercise caution and avoid falling victim to investment frauds or engaging in excessive leveraging that may result in substantial losses.